History tells us that stocks can perform nicely even when the 10-year Treasury yield increases over a sustained period of time, writes Charles Schwab's top investment strategist.

Most of our writing lately has still been optimistic in the longer term, but cautious in the near term. We don't try to time stock-market pullbacks with any kind of precision, but given very elevated investor sentiment—a contrarian indicator—and flashes of overbought conditions technically, we've recently been in the short-term pullback camp. Whether the May 31 swoon into the market close was the beginning of a pullback is yet to be determined. However, the chatter about why it occurred is worth delving into.